[Orlando, Fla.] The North American Association of Floor Covering Distributors (NAFCD), which gathered here Nov. 13-15, put a number of changes into play at this year’s event. Based on a thorough member survey, the association focused on better opportunities for partners to meet; joined with like-minded associations to bring market expertise to its members; and, offered more education opportunities.

“We’re going to continue making changes to make our convention more of an executive networking show and less of a mini Surfaces,” said George Roth, incoming NAFCD president and CEO of Missouri-based Lockwood Flooring. “The biggest value of this show is the unexpected conversations you find yourself having. We want to foster more of that. And I’ve had suppliers tell me they’ve cut their show costs in half by not having to bring full displays.”

Michelle Miller, NAFCD executive vice president, said that the organization wanted to give members more takeaways. “We gave members the opportunity for private meetings; we added a networking night on Tuesday so that higher level folks came in that night. It’s all about options and opportunities.”
To meet this year’s goals, the product exhibition portion was reduced in favor of increased executive meetings and education sessions.
“You can get business done here very efficiently and quickly without the distractions you get at other shows that are geared towards a wider industry audience,” said Roth.

Jeffrey Feller, U.S. sales manager, Strategis, said he personally invited every attending distributor to his tabletop exhibition but that it was chance conversations outside his exhibition space that landed two new accounts.

“I did get two new distributors and that more than pays for membership and the show,” said Feller.
NAFCD currently has 80 members. “Our goal for next year is to drive membership,” said Miller.

More partnerships
The NAFCD, which shared its convention with the North American Building Material Distribution Association (NBMDA) for the third consecutive year, announced it has entered into a cross-member partnership with the National Wood Flooring Association (NWFA).

“The members of NAFCD can now go to NWFA for the same price as their members and in return, NWFA members can come to our conference at member prices,” said immediate past NAFCD president David Williams. “There are lots of opportunities for training and education by working together. There’s strength in numbers.”
Michael Martin, NWFA president and CEO noted, “The important thing is that NAFCD breaths distribution issues 24/7 and we breathe wood flooring issues 24/7. We can be the voice of expertise in wood flooring and they can be the voice of experience in distribution.”

Another joint effort available to members is a partnership with the University of Pennsylvania aimed at broadening education opportunities. NAFCD and NWFA members, along with the Association of Rug Care Specialists (ARCS) and World Floor Covering Association (WFCA) can participate in a newly formed Institute for Leadership and Business Growth program.

Consisting of three days of classes on the University of Pennsylvania campus, followed by five weeks of online courses, the program curriculum consists of entrepreneurial accounting, navigating family business issues, marketing, human resources management, leadership development, negotiation/dispute resolution, operations management and other topics. According to Martin, the goal is to have five members from each association attend.

Repairing relationships
While this year’s convention offered attendees breakout sessions pertaining to sales, merchandising, pricing and procedures for responding to emergencies, an emphasis was placed on repairing distributor/manufacturer relationships.

A survey of attendees revealed relationships within the supply chain have reached a fragile state as a result of measures taken by both sectors during the downturn. Additional strain came from e-commerce, Chinese competition, territory issues and eroding margins. According to attendees, there is a record-high level of mistrust, cost cutting and reduced services and support from both sides.

“The conflict basically boiled down to the sales just not being there,” said Nick Melnyk, vice president of Cain & Bultman. “The retailers didn’t have the customers coming in and manufacturers thought distributors couldn’t get the deal done. And distributors thought manufacturers wanted to know who our best customers were so they could service them directly. Sales weren’t there for either and it caused mistrust.”
Distributors and suppliers said, however, that they are experiencing marked improvements.

“We made the cuts we had to make and now those salaries have been restored,” said Melnyk. “We’ve turned the corner. We now have profit sharing for our 401(k) for the first time in two years.”